September 2022 Witnesses Improving Prices Dynamics For Caustic Potash Globally
- 29-Sep-2022 3:33 PM
- Journalist: Kim Chul Son
With the termination of September, the price dynamics of Caustic potash settled at an upward trend in the global market. The strong demand from the downstream industries, such as soaps and detergents, and high feedstock Sodium Hydroxide costs, significantly impacts the prices of Caustic Potash. Furthermore, the resumption of the market activities across the European region has uplifted the customer confidence amongst the Caustic Potash market players in numerous areas, with price competitiveness in the European market.
The European Caustic Potash prices increased in September, owing to the high input costs and unchanged domestic demand. Surging natural gas and feedstock Sodium Hydroxide prices in Europe elevated the commodity's spot and contract values this month. Caustic Potash producers are compelled to pass on increasing input costs pressure to the region's consumers. The rise in the oil and gas prices put margins under pressure in the regional market during the third Quarter of 2022. According to the trader, Russia's decision to reduce natural gas flows to Europe has further led to surging gas prices in September 2022 and forced production cuts.
Meanwhile, APAC Caustic Potash prices showed a surge in September, backed by the increment in the domestic demand from the Soaps manufacturing industry with an increment in the personal care and cleanliness concern amongst the Buyers. Moreover, escalation in feedstock costs and high upstream energy values amidst high inflation also contributed to the rise in commodity prices in the region.
As per the ChemAnalyst anticipation, the Caustic Potash prices may further show a rise in October, with the increment in the domestic offers from the soaps manufacturing industry in the Global market. Meanwhile, an elevation in the international demand for the product is expected globally, with anticipated ease in the inflation pressure. Therefore, Caustic Potash prices are expected to be influenced by the pickup in consumer confidence in the market.